A Purdue-based group has released a study that predicts an unprecedented rise in future electricity rates coupled with a stagnation in energy demand.

The State Utility Forecasting Group, a state-funded panel of researchers based at Purdue University, predicts a 32-percent increase in Indiana’s electricity rates by 2023. The report predicts the rise in rates, coupled with an increase in energy-efficient programs, products and buildings, will lead to a stagnation in energy demand over the next 20 years.

The group attributed three factors to the projected rate increase: costs associated with more stringent Environmental Protection Agency rules, costs associated with additions and modifications to power plants and costs associated with the resources needed to meet electricity demands.

“This is something we've never seen before: essentially no growth in electricity,” said Douglas Gotham, the group’s director, in a prepared statement.

The group prepares the report every two years for the Indiana Utility Regulatory Commission. The group announced the findings today in a news release after presenting the report on Dec. 20 to the commission.

About IndianaDG

The Indiana Distributed Energy Alliance was incorporated with the Indiana Secretary of State on 3/15/2012 as a non-profit corporation. The Alliance intends to incorporate as a 501(c)(3) organization with the IRS. This reorganization is intended to allow for a broader coalition effort amongst businesses, individuals, elected officials, local units of government, colleges and universities, labor unions, economic development groups as well as environmental and consumer organizations to join together to promote renewable energy and distributed generation.